Over to You: Would you buy a car from a bankrupt company?
The Detroit News is saying this morning that GM couldn’t convince enough of its bondholders to swap debt for a 10 per cent stake in the company. Apparently, this will push the automaker closer to a Chapter 11 bankruptcy filing by Monday, the deadline by which the automaker was required by the U.S. government to restructure and reach money-saving concessions with the United Auto Workers and bondholders.
Go figure. The number of bondholders who agreed to the swap was "substantially less" than the 90 percent mandated by the U.S. Treasury Department, which has loaned GM $19.4 billion.
So with Chrysler posting a similar filing at the beginning of this month, that’s two-out-of-three of the Les Detroit Trois that have lost control of their companies.
So, over to you, Crank crew: Would you buy a new car from one of these bankrupt automakers?
[Source: Detroit News]